Pets integral to health and wellness, will drive the business

For several weeks we have predicted resilience for the pet food segment, and that is borne out in recent sales performance reports from Nielsen. Dog food was up 37.5% year over year for the week ending March 14, and up 54.7% for the week ending March 31.

While this may be attributed to some stocking up (and even hoarding) behaviors in and around the stay-at-home restrictions, the overall forecast for the remainder of 2020 continues to show modest growth, now projected at 4% for the pet food segment for the year, according to Packaged Facts.

Long term, the pet food business will not only weather the storm but will continue to grow despite the economic conditions impacting other business segments. Unlike the Great Recession of 2008 and ’09, the pandemic is a different threat, one that has served to greatly enhance the value proposition of pet ownership.

In a related story, Emergent has tracked a variety of reports from around the country showing pet adoptions are increasing as mandated stay-at-home conditions continue to favor the presence of dogs and cats in the household.

Human and pet food trends are intertwined

As many in the pet industry already know, the relationship between human food business trends and pet food are extremely close. According to a recent report from The Hartman Group on consumer response to COVID-19, stress and anxiety management have risen to the top as the fundamental driver for self-directed efforts to manage health and wellness.

Consumers are laser focused on developing ‘nurturing habits’ to help them feel well. Conversations about mental health have been de-stigmatized in recent years and consumers believe their wellbeing is tied not only to physical exercise and better eating, but also to their ability to manage stress in their lives.

Dogs and cats are known stress-reducers. Hartman goes on to report an uptick in physical activities among home-bound households, as people work to resolve their growing needs for physical and mental wellbeing. Dogs, especially, are part of this regimen as anecdotal reports continue to escalate about increased frequency for dog walking and outdoor activities involving them.

Emergent believes these trends form the basis of resilience for pet food, even as other sectors in pet care, including Veterinary services and pet boarding, face increasing headwinds.

Pet Food Processing survey underscores continued growth

A recent survey conducted by Pet Food Processing reports 63% of pet food manufacturers have seen an increase in demand fueled by novel coronavirus conditions.

Other relevant data useful for planning:

57% of pet food brands are seeing growth in the e-commerce channel, and 30% say distributor sales are up.

25% are experiencing growth in grocery, supercenter and club channels.

73% are reporting no current declines in any channel.

28% have reported no material changes in their business results.

20% have experienced disruptions in the supply chain, an area of vulnerability.

Rigid demand supported by value surge

Now is not the time for pet brands to go dark in the midst of economic uncertainty. Dogs and cats own a unique and special position in the home that will continue to elevate their value as part of the household budget. History shows repeatedly that brands which continue to invest in times of economic challenge show comparative growth and increased share of market, as a reward for their perseverance.

• Rather than focus on protein percentage wars that have been a familiar refrain for some time in pet food marketing, Emergent recommend brands become more focused on pet lifestyle relevance and the incredibly important bond between pets and their parents.

The pandemic has served as an ultimate reminder to people about why their pets matter and how much they derive personally from the relationship. Scientific studies that for decades have shown a positive relationship between pet ownership and the physical health and wellbeing of owners, is getting the biggest global real-world test in the history of the industry.

While the year on year growth will be more conservative than previously forecasted (pre-pandemic), it is nonetheless a viable condition to manage, unlike other businesses now struggling with relevance and priority.

We anticipate the demand for pet food to remain steadfast based on the growing evidence that pet ownership is irrevocably tied to human wellbeing.

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This is the moment to help consumers adopt a healthy lifestyle

COVID 19 has changed everything for consumers, who are now looking for ways to get back in control of their lives amidst unprecedented uncertainty. Food, beverage and lifestyle brands and retailers have an enormous opportunity to step into this need right now and help consumers do the one thing that can help protect themselves and their families from the advance of the pandemic: take control of their health and wellness.

• Strong immune systems are supported by optimal health and wellness and can be of benefit to everyone no matter their age. While the world operates uncontrollably around everyone, the ability of people to acquire healthier eating habits and experience other activities that will enhance their wellbeing, is within their grasp.

We have growing evidence that brands are becoming more relevant (important) than public institutions as a source of help and inspiration in these trying times. If you are considering where to place your bets on messaging and communications strategy, supporting health and wellness is your new calling.

Emergence of higher purpose strategy

For years now we have continued to publish routinely on the shifts in public sentiment and behavior that merit brand’s adopting a higher purpose to govern their decisions, operations and marketing. The pandemic serves as a catalyst for making this strategic endeavor a fundamental part of sound marketing best practices. The days of self-promotion and strict transactional thinking about brand building are over. More enlightened brand support is required, especially in view of the transformational change brought on by COVID-19.

Brands need a relevant, useful, valued voice right now, one that helps inspire people to adopt the changes that will help benefit their own health. This is the strategic path to establishing your brand’s higher purpose.  Content creation here can vastly improve the traction and engagement levels of brand communication in any relevant category, from better-for-you beverages to pet food.

The role of the higher purpose brand in health and wellness

The role of your brand in this important mission is as credible guide and advisor on the path to enhanced health and wellbeing. The instruments to deploy include:

• Healthier eating, preparations and menus
• Enhanced exercise and wellness regimens
• Improved sleep, relaxation and physical renewal
• Stress reduction and emotional management
• Family engagement, learning and relationship development
• Integration of pet lifestyle in all of the above
• E-commerce shopping tips and guidance to navigate dietary and wellness objectives

Stated simply, the best path is a holistic one that recognizes the integration of physical, emotional and spiritual needs – fundamental to enriching the lives of your customers and making a difference in how they successfully address the upheaval they’re experiencing.

Deployment of third-party voices

Key to activation is the use of outside third-party voices to help tell your story. Whether they are ‘real consumer brand fans’ who want to be of help to those around them, or experts in these subject matters areas from nutrition to culinary guidance.

Restaurant businesses are not faring well, and your efforts here could provide a new voice and relevance to chefs at a time when they need other channels of opportunity. Believe me, they want to help, too.

This is not the time to go dark

Ample evidence exists that brands who continue to invest, who continue to actively engage their consumers, come out ahead in sales growth and market share positions during tough economic times. Consumers remain open to receiving marketing messages from brands, especially those that have their best interests at heart.

However, the character of the message becomes ever more important and why the health and wellness platform for communications is directionally significant. Helping people get back in control of their lives is an important call to action. You have an opportunity here to earn their trust and their attention.

How Emergent can help you

1. We can help you shape strategy around a higher purpose mission, tailored to the unique characteristics of your brand, business and consumer.
2. We can build a compelling messaging platform that provides guidance to all external and internal communications efforts.
3. We can help you identify and secure the right outside voices to help build trust and validate what you want people to know and believe.
4. We can help you create content and execute outreach in earned, owned, paid and social channels of communication.

Let us know your questions and challenges. We’re happy to help in any way we can.

After all, we’re all in this together.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Time to stop talking about wiping down surfaces

A veritable flood of email communication is heading outward by the minute from brands and retailers, serving mostly as a reminder of hygiene activity and safety practices. While doing so is certainly admirable, it abrogates the one maxim of effective communication that, now more than ever, must be observed to build consumer trust and relationship.

First, for clarity, we recommend the hygiene regimen focused emailing should cease. It serves only to remind people of the coronavirus threat. It is also placing the company at the center of the message rather than the consumer. Hygiene has its place, but not as a lead message.

Effective storytelling begins with observing these important criteria:

• How is my brand communication being helpful and useful to the consumer in the new conditions they find themselves?
• How can I help improve customers’ lives at a time when homebound stresses multiply, and families are living in isolation?
• What utility are you providing that earns permission for engagement and hence is seen as value-added rather than corporate interruption?

Successful communication places the consumer at the center of messaging

The consumer MUST be the hero of your messaging. Their needs, concerns, conditions and challenges are paramount at a time when anything else may be greeted as irrelevant or spam. Granted it’s important to provide information on safety practices and supply chain integrity. That said, you should lead content strategy with consumer-relevant stories over internal mandates.

What’s going on right now that informs messaging strategy:

1. People are homebound and contending with the growing stresses related to confinement, absence of lifestyle options and restricted social activity.
2. Children are out of school and disrupted from their learning routine and quality interaction with friends. Boredom is a real thing.
3. The home is the center of the universe and meal preparation activity becomes a never-ending call to action.
4. Online communication and contact are at a premium and is a threshold for engagement while screen time explodes.
5. Economic uncertainty bubbles underneath as people grow wary of the quarantine consequences for business and jobs.

What to convey in your outreach messaging:

• Be empathetic. Put the brand in league with consumer concerns during this time of crisis. A human, conversational voice is essential. Edit out corporate speak or self-promotion.
• Offers and generous incentives are important as a thank you and to help ease the stresses on family finances. This may sound like self-promotion but it isn’t. It’s just a well-timed reward.
• At no other time in the history of modern cultural change has health and wellness become more important. Now is the time to weigh in on stories aimed at helping people take better care of themselves, physically, mentally, emotionally and spiritually. This is your higher purpose right now.
• The kitchen is now the center of the home universe. This is the time to become helpful on menus ideas, preparation hacks, e-commerce ordering tips, interactive cooking experiences with the kids, recipes, pantry stocking advice, food freshness guidance, home baking (the most challenging of culinary skills), and ways to take the drudgery out of home meal prep. Pivot to online cooking classes with your corporate chef.
• Time needs filling with activities that have more going for it than consuming massive quantities of Netflix programming. Here are some ideas, advice, guidance on activities and pursuits that take advantage of the extra down time:

Music

Art projects

Reading and learning; podcast listening is on a tear

Exercise, yoga and online experiences to promote same

Meditation, mental health and wellness

Home repair and refurbishment

Pet behavioral training

Interactive activities with pets

Spring housecleaning tips

Organization and decluttering the home

Games, puzzles, and other hands-on moments of home-based entertainment

Spring gardening

Online workshops for any of these

You may be asking what’s this got to do with my business, and the answer is, it’s about them and how marketing becomes useful to people in extraordinary conditions.

Unselfishness is put to the test

Ample evidence exists that earning trust and belief is best served when the consumer believes you are genuinely concerned about them and improving their lives. At its core this requires a move towards a less selfish form of marketing that puts their intrinsic needs first.

Given the incredible circumstances in which we find ourselves, this axiom is more important than ever. Reciprocity is the guiding principle that should help direct your strategic thinking. When the brand becomes an enabler, guide and coach, you are seeding the opportunity for a welcomed and appreciated relationship.

This will require a reorientation from traditional command and control forms of marketing. However, the more enlightened approach will put your brand in position to engage at a time when there are fewer distractions. People are looking for the voices that provide useful guidance in these uncertain times.

If you need help in navigating the right message and content, we’re here to assist.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Guidance as new voice required in the face of cultural upheaval

Whatever the marketing plan looked like four months ago, it’s changing now in the face of a new reality and shifts in consumer attitude. Here we will chart the conditions and explain an enlightened approach.

So you understand what sits underneath the shifts:

Awhile back when we were engaged in the home safety products category, we had access to reams of quantitative and qualitative research to help us understand what the barriers were to purchase of potentially lifesaving products. The primary hill climb can be summed up in six words: “It will never happen to me.” Home fires, carbon monoxide incidents and other similar close-to-home threats happen to “other people,” consumers believed. This complacency could only be disrupted when confronted with real people stories of loss and tragedy.

The self-assessment people made was, never in my backyard. Now that sentiment has broadly shifted.

The unfolding events around us all has created a new reality. The change can be summed again in a statement, only modified as “it CAN happen to me.” We are witnessing the emergence of primal fear, anxiety nourished with uncertainty, multiplied by the speed of change going on and accelerated by public policy moves in an effort to flatten the curve of pandemic impact.

People believe they are truly vulnerable, while news reports of continued escalation in COVID-19 cases operates as confirmation of that view.

What does this mean to you? There is a rapidly increasing need for emotional support and preparedness. If you’re wondering whether or not consumers are paying attention to your behaviors and communication, a new research report suggests they are closely watching your moves.

• Gfk research has been tracking the changes and in a recent report said that 73 percent of consumers say how companies react and handle the unfolding crisis will have an impact on future purchase decisions. No surprise, 85 percent of Gfk respondents indicated the virus is impacting their shopping behaviors, presaging a significant, and likely lasting, migration to e-commerce channels.

Primary call to action: consumers are looking for “a brand I can trust to guide me.” Thus, it’s time to step back and take a hard look at what initiatives and outreach in your current efforts are specifically addressing the need for trust creation.

Trust and safety are paramount

• How are you expressing and addressing empathy and support for the lifestyle upheaval and anxiety people are experiencing?
• Can you help people answer and manage the emergence of ‘family cabin fever’ conditions in the home?
• Can you provide lifestyle encouragement, advice and ideas to help home-bound families continue healthy living regimens and behaviors?
• Of note here, the more ‘unexpected’ it is from you in the areas to try to be helpful in, the more unselfish and trustworthy you appear.
• Time to enable and encourage community conversation of shared experiences and events in your social channels. People need a place to engage and share.
• Reveal details of your ingredient safety and testing standards in product creation. In fact, generally there has never been a better time than now to be transparent about everything.
• What are your manufacturing hygiene protocols and safety procedures?
• For emerging brands, communicate your supply chain integrity and ability to continue the regular flow of products to distribution. If there are limitations in this area, explain them openly and honestly.
• For food retailers, your customers are going to hit exhaustion with home meal preparation 24/7. How can you amp up your prepared meal solutions business to bring some welcome relief for home chef monotony syndrome?

Engagement likely to be at an all-time high

With fewer distractions and a feast of extra time on their hands, people will be more open to engagement and have the bandwidth to pay attention. Content creation strategies can help fill the void. That said, it’s important to observe the rules of being helpful and useful over product promotion hype.

In 2008 and 09 when the economy tanked, a great lesson was served to businesses everywhere. Companies that continued to invest and communicate experienced share gains over rivals who answered the soft economic conditions by going into a fiscal fetal position.

You have the chance now to be seen and heard. What you say will impact perceptions of your ability to be trusted and of value to consumers’ rapidly changing lives.

If you need help navigating in this time of great change, please let us know.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Pets Impact Your Health and Wellbeing

As families endure the uncertainty of pandemic conditions outside their homes, the value proposition of pet ownership is getting a boost. Most pet owners can easily attest to the emotional benefits of having that wagging tail or purring rub greet you each morning. Furry family members provide a calming, mood-enhancing effect in the face of adversity.

That said, moving beyond the stress-reducing benefits of spending more quality time around dogs and cats is emerging evidence that pets can contribute directly to owner health and well-being.

In Dr. Marty Becker’s landmark book, The Healing Power of Pets, this renowned Veterinarian brought to light tangible associations between pets and the health and wellbeing of their owners. Becker characterized dogs and cats as a “human life support system,” based on studies showing a link between the presence of pets and the prevention, detection and treatment of illnesses.

A literature search on pet-to-human health impacts, reveals studies and published reports that draw connections between pet ownership and –

• Lower blood pressure
• Improved recovery outcomes from cancer and strokes
• Reduced use of medications
• Lower risk of heart disease
• Reduced doctor visits and associated costs
• Early detection of cancer
• Enhanced self-esteem
• Improved mental health
• Relief from Post-Traumatic Stress Disorder (PTSD)
• Treatment of depression and loneliness
• Doctor recommended therapy in treatment of Autism, Alzheimer’s and spinal injury

According to the American Pet Products Association, 68 percent of U.S. households include a pet, with 90 million dogs and 94 million cats residing in homes.

The deep emotional bond between pets and pet parents has always been a source of motivation driving the continued premiumization of the pet care marketplace. Advancing sales of super premium pet foods, for example, is attributed to the growing desire to provide nutritional quality that is on a par with human-quality diets. Pets are now fully ensconced as card-carrying family members.

A connection between human health benefits and pet ownership may become more apparent while the pandemic turns lifestyles upside down, and the pet to pet-owner relationship helps measurably improve wellness and happiness in the midst of unprecedented upheaval.

If pet ownership makes people not only happier but also healthier, it is likely the relationship value will rise with it, and the increase in pet-owning households will grow alongside.

Marketing best practices trail behind the evidence of lifestyle benefits

Pet food is an interesting category due to the similarities in product form – kibble has essentially the same brown nugget appearance brand-to-brand. The continued growth of brands offering higher protein foods made from animal, poultry and fish proteins, has prompted brands to also similarly emphasize analytical messaging around ingredients and protein percentages inside the nugget.

However, the latest research in consumer attitude and behavior shows that people remain emotional creatures who make decisions led by their feelings more than facts. The correlation between pet ownership and improved owner health and wellbeing could fuel the continued growth of high-quality pet foods. This will occur for the very reason that people themselves have already connected the dots between what they ingest and their own quality of life.

However, the pet food industry is still stuck in analytical rather than lifestyle marketing practices.

It’s time that pet brands look more closely at the contributions pet ownership can make to family health and understand the emotional connectivity this fosters. While other business categories will undoubtedly suffer in the presence of COVID-19, it is clear pet owners feel strongly about feeding quality foods and have routinely shown they will make sacrifices in other areas of their life to do so.

It may very well be that dogs and cats will be the heroes that elevate family health and happiness during this trying time.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Efforts to create, innovate and communicate will inform your brand’s future

You’ve undoubtedly run across the ‘dystopian future’ movie storyline, usually brought on by some cataclysmic disaster with intrepid or hysterical survivors running into a grocery store, only to be greeted by empty shelves while wading through torn packaging detritus everywhere. I had this movie-like experience only last night at the Mariano’s supermarket nearby. I witnessed the fear-driven cart Olympics mad dash as aisle after aisle of products were emptied save a lone, bruised apple and a dented, torn box of cereal left dangling precariously on an otherwise barren shelf.

Uncertainty and media drama are partners in the perceptual stew that pushes people into behaviors normally reserved for cinematic storytelling. Fear of the unknown grips as the house now achieves safe haven sanctuary status and toilet paper becomes one of the most elusive, rare and sought-after commodities in the nation.

Keep Calm and Carry On

In 1940 at the height of the Blitzkrieg (The Blitz) that showered Great Britain with bombs in the night, dropped indiscriminately on London neighborhoods, the government released its now famous poster Keep Calm and Carry On. This statement became a dominant theme embraced by incredibly brave British citizens in the face of unrelenting catastrophe and sharpened their resolve to weather the life-threatening storm.

Right now, today, you have an opportunity to help your customers Keep Calm and discover the opportunities presented by a large dose of enforced family time and homebound adventures and experiences. Creative, innovative thinking and generous outreach is the required skillset.

Lemonade from lemons

The foodservice industry is taking it on the chin. In Seattle, the hardest hit city in the nation from COVID-19, business has virtually disappeared from restaurants as people remain home. Arguably Seattle’s finest dining establishment, Canlis, an iconic example of culinary quality that has led the dining scene there for decades, elected to close.

Chef-owner Tom Douglas told Restaurant Business magazine revenue was off by 90%, which might as well be 100%. Nonetheless, Douglas’ response was instructive to us all. He announced the opening of three concepts based out of Canlis kitchens that will serve the takeout, drive through and home delivery market segments. The Bagel Shed will offer breakfast options; Drive on Thru will provide lunchtime burgers, veggie melts and salad; Family Meal will offer a rotating menu of dinner entrees and a bottle of wine delivered to your door. A creative deployment of solutions and assets that helps keep the team employed while answering the opportunity for off-premise consumption business.

Salve for Uncertainty

Communication, and lots of it, is required in these unprecedented times. Your motivation is not only to inform users of what your business is doing to keep the flow of goods and services they need safely in motion, but also to express care and concern for their health, wellbeing and happiness.

The schools my daughters attend are now closed. My youngest is a dancer, and her classes and performances have been cancelled. My oldest is an ice skater and the rink is shut and practices stopped. What we have going is each other, our wonderful dogs, more time together and adventurous spirits.

How can your brand operate as coach and guide for family activities, more hands-on experiences with the pets, and a renewed focus on home-prepared meals? With no sports, no concerts, no large group events of any kind, the marketplace may well be listening and consumers more open to engagement than ever before. There are certainly wayyy fewer distractions competing for precious attention.

Your brand’s ability to operate as an enabler and resource is important in this environment. Social communities can become outlets of shared experience. In Chicago, the Nextdoor online community bulletin board is on fire as people share thoughts, ideas and concerns on the changes occurring before us. One of the most active conversations is around the status of fresh food supplies in local supermarkets and guidance on who has what.

People want to share and engage with each other

We have arrived at a new era where businesses increasingly understand they are about more than manufacturing, retailing and commerce. Companies have discovered their growing role in authoring the greater good. This self-discovery opens the door to building a more human and approachable brand that understands relationships with users are increasingly like real, human friendships and the natural reciprocity that exists in that personal dynamic.

When brands talk, walk and behave in a more human and relate-able manner, they become more resonant and trustworthy. You have been handed an extraordinary opportunity to help people in the midst of a trying storm. Empathy is a great characteristic and will serve you well as people embrace your voice of reason and support.

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